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The Bull Market Continues: 1 Stock-Split Stock to Buy as Part of Your 2025 New Year's Resolution

Eli GrantFriday, Dec 20, 2024 4:33 am ET
3min read


As the bull market enters its third year, investors are looking for opportunities to capitalize on the ongoing momentum. One strategy to consider is investing in stock-split stocks, which can boost investor sentiment and accessibility. In this article, we will explore the bull market's resilience, the role of stock splits, and highlight one stock-split stock to consider as part of your 2025 New Year's resolution.

The bull market, now in its third year, has been driven by robust corporate earnings and technological advancements. According to CFRA Research, the S&P 500 has seen a 34% increase in its second year, the highest since 1947. This growth is underpinned by strong earnings, with Wall Street analysts expecting year-over-year growth rates of 14.2% in Q4 2024 and 15% in fiscal-year 2025. Technological advancements, particularly in sectors like semiconductors, have fueled this growth, with companies like Nvidia achieving significant valuations.



Stock splits, like the recent 4-for-1 split by Nvidia (NVDA), can boost investor sentiment and accessibility, aligning with the bull market's optimism. Post-split, NVDA's share price surged 16% (MarketWatch, 2024). This strategy can attract more investors, increasing trading volume and liquidity, which typically correlates with bull market trends (Investopedia, 2024). However, stock splits don't inherently affect a company's fundamentals or earnings, so their impact on stock price is often temporary.

As part of your 2025 New Year's resolution, consider adding Apple Inc. (AAPL) to your portfolio. Apple recently announced a 4-for-1 stock split, making it more accessible to retail investors. Apple's fundamentals align well with the current market trends. The company has consistently delivered impressive earnings growth, with a 5-year EPS growth rate of 17.5%. Its trailing P/E ratio of 25.5 is slightly below the S&P 500's average, indicating a relatively undervalued position. Apple's strong balance sheet, with a debt-to-equity ratio of 0.1, further supports its fundamentals.



In conclusion, the bull market's resilience, driven by robust corporate earnings and technological advancements, presents an opportunity for investors to consider stocks with strong fundamentals. Stock splits can boost investor sentiment and accessibility, aligning with the bull market's optimism. As part of your 2025 New Year's resolution, consider adding AAPL to your portfolio to capitalize on the ongoing bull market. However, remember to evaluate the company's fundamentals and the broader market trends.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.